IMF says it won’t boost Pakistan’s $1.4bn climate resilience loan despite flood damage
Assalamu alaikum - just sharing news that might matter to many of us back home. An IMF official has confirmed they are not planning to increase the $1.4 billion Pakistan has access to under the Resilience and Sustainability Facility, even as authorities continue to assess losses from the recent heavy monsoon rains and floods.
Islamabad and the IMF recently reached staff-level agreements on the second review of Pakistan’s Extended Fund Facility and the first review under the RSF. The RSF is meant to help countries strengthen their economies against climate shocks, and Pakistan was the first in the Middle East and Central Asia to use it. The IMF’s Executive Board approval allowed Pakistan to receive about $200 million from the RSF, within the overall $1.4 billion access.
Officials say Pakistan is still tallying the damage from this season’s floods, which have killed many people, destroyed livestock and flooded millions of acres of crops. When asked if the IMF would raise the RSF amount, the IMF’s country representative for Pakistan, Mahir Binici, replied that the IMF approved access of around $1.4 billion on May 9, 2025, and "a change in the access amount is not under consideration."
Binici also noted that Pakistani authorities have shown commitment to the EFF reforms and worked hard to meet program targets, though some specific targets are still being assessed. Pakistan had secured a $7 billion EFF package in September 2024 to help stabilize the economy after high inflation and devastating floods.
The IMF warned the floods have worsened Pakistan’s outlook - especially for agriculture - and could pull down growth in FY26 to roughly 3.3–3.5 percent. May Allah make it easy for the people affected and grant strength to those rebuilding their livelihoods.
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